Fidelity HSA Review: Is It Any Good?

erdikocak / iStock via Getty Images

With skyrocketing healthcare costs, it can help to have a savings fund built to tackle future medical bills.

A Health Savings Account (HSA) lets you invest for future qualified medical expenses, while getting tax benefits.

So let’s take a look at how the Fidelity HSA holds up.

Fidelity HSA at a glance

Piggy bank with stethoscope isolated on light blue background with copy space. Health care financial checkup or saving for medical insurance costs concept.
Source: Nudphon Phuengsuwan /
HSAs help you save for qualified healthcare expenses.


Account minimum None
Maintenance fees Zero
Account types Self-directed and robo-advisor

Fidelity HSA benefits

Head shot portrait smiling Indian female doctor physician in white uniform with stethoscope holding pink piggy bank, looking at camera, medical insurance or charity concept, healthcare and medicine
Source: fizkes /
An HSA offers triple tax benefits.

You can open a Fidelity HSA with no account minimum. And Fidelity doesn’t charge any annual account maintenance fees, as many other HSA providers do.

Plus, you receive triple tax benefits.

  • Your contributions are tax-free
  • Earnings in the account grow tax-free
  • Withdraws for qualified medical expenses are tax-free

But keep in mind that any withdraws made for non-qualified expenses would trigger a 20 percent penalty on the withdraw in addition to regular income tax. The penalty would be waived if you’re age 65 or older, however.

How does the Fidelity HSA work?

Portrait of affectionate young mother cuddling little cute girl, sitting at table with piggyback, planning future family investment, saving money for healthcare insurance or college education.
Source: fizkes /
The Fidelity HSA offers a variety of investment options.

To open an HSA, you’d need to pair it with a high-deductible health plan (HDHP). Afterward, you have two types of Fidelity HSA options.

With a self-directed Fidelity HSA, you get to manage your own account and choose your own investments. Fidelity offers access to virtually the entire universe of securities including the following.

  • Stocks (Including fractional shares)
  • Bonds
  • Exchange-traded funds (ETFs)
  • Mutual funds

As a highlight, the firm also lets you invest in its zero-expense-ratio mutual funds. Expense ratios are management fees that could dig into your savings.

You can also explore the firm’s pre-selected HSA Funds to Consider list.

Additionally, you can open an HSA through Fidelity GO. This is a robo-advisor platform. After answering a few questions, the robo-advisor recommends a personalized and diversified investment portfolio for you built with zero-expense-ratio mutual funds. These funds offer exposure to different asset classes including domestic stocks, international stocks, and bonds.

The Fidelity GO HSA is automatically managed, so it can be a good option for those who don’t want to manage and pick their own investments.

But while there’s no minimum to open a Fidelity GO HSA account, you’d need at least $10 to start investing. And you should know that there’s a 0.35% annual management fee for Fidelity GO HSA accounts with balances of $25,000 or more. But this would also give you access to one-one-one, 30-minute calls with individual Fidelity advisors. These individuals can help you map out a financial plan to tackle other financial goals like retirement.

In fact, an HSA allows you to make penalty-free withdrawals for anything after reaching age 65. However, you’d still owe regular income tax on the withdrawal.

Fidelity HSA: The verdict

Source: Juanmonino / E+ via Getty Images
The Fidelity HSA could be a solid option.

The Fidelity HSA definitely stands out among the competition. Its zero account minimums and zero maintenance fees make it a top contender for low-cost HSAs. But there are some points to keep in mind like a 0.35% advisory fee on Fidelity GO HSA accounts with balances over $25,000.

How to open a Fidelity HSA account

health savings account HSA concept with application form,dollar money, stethoscope on desk.
Source: create jobs 51 /
The process to open a Fidelity HSA would vary depending on some variables.

If you’re interested in a Fidelity HSA, follow these steps.

1. Visit its official page and click on “Open an HSA.”

Source: Courtesy of Javier Simon via 24/7 Wall St.

2. Choose whether you want a self-directed or Fidelity GO account.

Source: Courtesy of Javier Simon via 24/7 Wall St.
Courtesy of Javier Simon via 24/7 Wall St.

3. Select whether you’re an existing customer or new

4. Follow the prompts

Depending on the type of HSA account you’d want and whether you’re a new or existing customer, you’d need to fill out different forms.

But be sure to have the following ready.

  • Social Security number
  • Address
  • Phone number
  • Country of citizenship

You’d also need to determine your eligibility. So make sure you have important details regarding the high-deductible health plan you’d like to pair your HSA with.

Why we covered this

Baby Boomers | An older couple cooking a healthy vegan meal with vegetables together
Source: Kerkez / iStock via Getty Images
Take a look under the hood of each HSA offering you’re considering before making a decision.

Healthcare expenses can be a major burden for many people. So it’s important to have a strategy to prepare for these unexpected obstacles. HSAs can help. But not all providers deliver the same package. So it’s important to do your research. That’s why we took a deep dive into the Fidelity HSA to help you determine if it’s something you may consider.

If you want to learn more about Fidelity, check out our regularly-updated list of Fidelity Investments guides, news, and coverage.

ALERT: Take This Retirement Quiz Now  (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.